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ADDRESSING THE GAPS: Valuation Panel Discussion
ADDRESSING THE GAPS: Valuation Panel Discussion
June 6, 2022, 5:05 p.m.
Realestate News
Realestate.com.kh is extremely proud to sponsor and support the BritCham & IBCย Luncheon and Panel Discussion on Property Valuation in Cambodia: "Addressing the Gaps." The development of the Cambodian valuation industry is a core factor is creating a sustainable real estate market. BritCham and IBC in partnership with the Royal Institution of Chartered Surveyors (RICS) and the Cambodian Valuers and Estate Agents Association (CVEA) would like to welcome you to a focused business luncheon on the topic of valuation of property in Cambodia: "Addressing the Current Gaps."Join us on Tuesday 19th April with our panel of experts who will share their perspectives, followed by an open discussion with the audience on the state-of-play of valuation in Cambodia. SIGN UP NOWย About the Panel Speakers:Salim Aslam, ASEAN Manager, Royal Institution of Chartered Surveyors (RICS):Salim is ASEAN Manager for the Royal Institution of Chartered Surveyors (RICS). RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. The organisation accredits 118,000 professionals and any individual or firm registered with RICS is subject to it's quality assurance. The UK Governmentโ€™s Foreign and Commonwealth Office and UK Trade and Investment commissioned RICS to produce a report on Building or Fire Safety standards in the construction sector the topic with a view to providing the Cambodian Government with assistance in developing building standards and ensuring better regulation. The Report's findings and recommendations were presented to and welcomed by the Government last year. Simon Griffiths, Associate Director, CBRE Cambodia: Simon Griffiths is a Senior Associate Director at CBRE Cambodia having been involved with the most high profile developments in Phnom Penh and benefitting from a total of over 10 yearsโ€™ experience in real estate, property management and valuation in Cambodia and the UK. Having overseen CBREโ€™s asset management department for over 4 years as well as being a registered valuer in Cambodia and with the Cambodian Stock Exchange, Simon has been involved in the completion of over 100 valuations ranging from hotels, historic property, land, commercial office developments and refineries. Simon was a Senior Surveyor at Gordon Ingram Associates (London, England) from 2007 โ€“ 2010 as a Planning and Development Consultant optimizing landmark developments in London such as The Shard, Battersea Power Station, Chelsea Barracks and Hyde Park No. 1 and was Chairman of the European Chamber of Commerce (Cambodia) โ€“ Real Estate and Construction Committee 2013 โ€“ 2014. Kim Heang, President, Cambodian Valuers and Estate Agents Association (CVEA):Kim Heang is a seasoned professional in the Real Estate industry, Business Development, plus a proven leader with the ability to leverage past experience and amazing creative knowledge towards the attainment of company goals. He has a background in both start-up and working with fast growth innovative companies and specialize in building a company's capabilities to rapidly increase revenue, service levels and profits. Currently, Mr. Heang is the President of the Cambodian Valuers and Estate Agents Association (CVEA) and the founder/CEO of Khmer Real Estate Co., Ltd. SIGN UP NOWBROUGHT TO YOU BY:SPONSORED BY:SIGN UP NOW
Develop your Real Estate Agency Capacity, Realestate.com.khTV
Develop your Real Estate Agency Capacity, Realestate.com.khTV
June 6, 2022, 5:06 p.m.
Realestate News
Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by Realestate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.On this weekโ€™s show, weโ€™re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 6: HOW TO DEVELOP YOUR REAL ESTATE AGENCY CAPACITY AND PROFESSIONALISM IN CAMBODIARealestate.com.kh: As a business development director at Vtrust Appraisal, obviously you do a lot of work helping real estate agencies increase their capacity. If you could give maybe the top four tips that you would give for real estate agency development? How to build a successful real estate business in Cambodia?In Sitha: Well, I think the four major factors that should be applied in order to make a successful real estate agency in Cambodia are Location, Human Resources/Training, Investment Capital and Marketing.Location is one of the key factors for a successful real estate agency business. Companies that are physically situated in the right locations for clientโ€™s easy access generally have the best success.Number two, human beings. Human Resources are crucial for any real estate agency. And this means the right people for the right jobs. Professional training for the agent shall be important and necessary too, and training should not stop during their career.Number three, Investment Capital. Any new real estate agencyย must be ready before starting at all for more than short term operational expenses. They need sufficient investment capital for at least three years. We have 2000 in real estate market in Cambodia and it is good. But in fact it's not enough. They have to pay a lot of operational expense. The staff salary, utilities, licensing, certificates, marketing etc etc. Be prepared before you try to start a business, because it wonโ€™t start generating money for some time.Number four is Marketing - you need to make your agencies known and respected. The best type of marketing these days is online. Learn more about choosing the right Cambodian real estate agent, on realestate.com.kh today!
Why Phnom Penh Boreys are so popular, Realestate.com.khTV
Why Phnom Penh Boreys are so popular, Realestate.com.khTV
June 6, 2022, 5:05 p.m.
Realestate News
Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by Realestate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.On this weekโ€™s show, weโ€™re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 4: WHY PHNOM PENH BOREYS ARE PROVING SUCH A POPULAR MARKET FOR DEVELOPERS AND HOMEBUYERSRealestate.com.kh: We're seeing a real rise in new borey developments across Cambodia recently. Can you explain why property developers are particularly interested in the Phnom Penh Boreys market? Why build a Borey?In Sitha: Okay. This is a good question. In this industry right now are seeing two main types of major developments: Borey development and condo development.Realestate.com.kh: Sorry, I guess for the viewers, can you explain what a Borey is? - Because I know this word is ย used a lot in Cambodia, but for people outside Cambodia, maybe they don't know what a Borey is.In Sitha: Essentially, a borey is a gated community of flat houses, twin villa houses and single villa houses, including public areas, gardens and full security services. Those who want to buy a borey home are looking for privacy, a safe place for their family to grow, areas where communities can develop, and a place where all modern amenities are assured. They are they prefered first home of newlywed Cambodian couples looking to start a new family.Most of the local developers choose to invest in Boreys. The reason is that developers themselves gain a lot of profit from investment in borey projects over relatively short investment periods. The customers themselves also buy into a good environment for family living. It is popular with Cambodian people who prefer landed buildings, or flat houses. In the Borey, itโ€™s generally all some kind of a flat house, link house or villa home. It can be one story or two story maximum. They also generally have a common area and playground for children. Check out the Borey buyers guide!Realestate.com.kh: Like a neighborhood. Like a fenced neighborhood. In Sitha: Yeah, that's right.Realestate.com.kh: They have infrastructure, have water, have electricity.In Sitha: All included. Generally, for a home in the Borey, the market price increase yearly from 10-15%. This is a good investment to the buyer themselves. They can buy this year, and next year they can sell. If the market is good, it could be more than 15% appreciation. Compare the interest rate with the bank, it's much better than investing the bank. Realestate.com.kh: Because the Borey ย buyer, they own the land right? They have freehold ownership of the land. In Sitha: Yes they own the plot of land that their home is situated on, hard title generally - but best to check!Realestate.com.kh: Now lots of local people move away from the city center to the Boreyโ€™s on the outskirts of town right?In Sitha: Yes, that's what you see. The Borey developments are long line investment development projects. Which means that the developer spends much more time on the investment, starting from the early master plans and filling the totally undeveloped land.Realestate.com.kh: Maybe fill the land.In Sitha: Yeah, up to the completion of the development projects. The marketing time also takes longer to promote and ultimately sell it. Borey means one community. And each household ย shall pay the management fee. Management fees are reserved for the security, reserved for the public life, reserved for the street cleaning, pool and playground for children- garbage collection as well. Boreys offer great security to families.Realestate.com.kh: More of a community lifestyle too?In Sitha: Yeah, yeah.Check out the latest and greatest borey properties, on realestate.com.kh today!
Common mistakes of Property Developers in Cambodia, Realestate.com.khTV
Common mistakes of Property Developers in Cambodia, Realestate.com.khTV
June 6, 2022, 5:05 p.m.
Realestate News
Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by Realestate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.On this weekโ€™s show, weโ€™re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 5: COMMON MISTAKES MADE BY PROPERTY DEVELOPERS IN THE CAMBODIAN MARKET, AND HOW TO AVOIDย  ย  Realestate.com.kh: What are some of the most common mistakes that you see developers making when they first come to Cambodia?In Sitha: Well, the most common mistake that the property developer makes when entering the Cambodian market is moving too fast. Before starting any project a feasibility study is crucial. And they need to get recommendations from professional real estate agents.Realestate.com.kh: They're moving too fast?In Sitha: Before starting the investment, yes. That's why they could not identify the right location for the right project. Developing and selling are not separate. You need to consider your market before you even break ground. Which means that my recommendation, I would like them to use a professional real estate agent to teach the international developer about the local real estate market conditions. At VTrust Appraisal - we can do that. We are experienced and skilled in the real estate industry since 2004. We are the first to get developer and agent license from the Cambodian Security and Exchange Commission of Cambodia. Feasibility study is the most common service that developers request us to do before entering into this market.Realestate.com.kh: So many developers are coming in and doing everything too fast. They think the local market is the same as the Singapore market or Malaysia market and they're very surprised.In Sitha: Yeah, thatโ€™s true. First of all they need to do the market research. What is the best area for starting the project? The project is built based on the available investment capital. We would like to get the best return on that investment capital. Realestate.com.kh: The right property, the right price and the right market.In Sitha: That's right.CHECK OUT CAMBODIA'S SMARTEST NEW DEVELOPMENTS
Penthouse Residence Groundbreaking Impresses Early-bird Buyers
Penthouse Residence Groundbreaking Impresses Early-bird Buyers
June 6, 2022, 5:05 p.m.
Realestate News
From 8:30AM on Saturday 12th March 2016, The Penthouse Residence proudly broke ground for their exciting new project onsite on Sothearos Boulevard.ย The ceremony was graced by the presence of most honorable guests, including H.E. Oknha Ly Hong and other key shareholders of the project.SEE THE FULL LISTINGAs expressed by Sunna Lee, Shareholder and Sales Coordinator for the Penthouse Residence, โ€œFor the first five weeks, we have already sold over 50% of our condominium. This is due to our unique location, design and the offering the best off-plan price for our customers.โ€Sunna continues, โ€œThis event marked our promised delivery to our valued clients because we want them to know that their investment starts from the moment that they signed their contract with us. Our projects started the groundbreaking/construction even before our showroom is finished. This illustrates how much progress we have made since the inception of The Penthouse Residenceโ€™s venture.โ€ The Penthouse Residence are strategically located on Sothearos Boulevard and architecturally designed to meet the demand for luxurious condominium living within the contemporary city of Phnom Penh, Cambodia.With its bold and innovative architectural design, nothing has been spared in creating Cambodiaโ€™s first luxury condominium development. 36 floors of luxurious residences complemented by every amenity will result in nothing less than lavishing, from the spectacular panoramas of the city skyline to the attentive services of the concierge and dedicated management team.The Penthouse Residence comes with roof top terraces, infinity swimming pool, fitness center and the first and only world class revolving restaurant in Phnom Penh, giving you a 360 degree panoramic view of the city skyline while you drink and dine. Surrounded by conveniences of international standard, Penthouse is located next to premium residences and business centers such as the Sofitel Hotel, Aeon Shopping Center and ICAN British International School to name a just a few key venues. Learn more about this exciting project today on Realestate.com.kh: SEE THE FULL LISTING
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Cambodian Real Estate Market makes Experts Optimistic
Cambodian Real Estate Market makes Experts Optimistic
June 6, 2022, 5:05 p.m.
Realestate News
Even though the sounds of construction ring across Phnom Penh, the Cambodian real estate market still needs development in terms of consistency and quality to encourage a higher rate of FDI in real estate. ย Nevertheless, in the eyes of many investors, Cambodia is demonstrating the political stability and consistent economic growth necessary for confidence in new foreign investments. The director of Khmer Real Estate, Mr. Kim Heang, said that the real estate development in Cambodia is showing great potential as the Cambodian economic sector is rising by around 8 percent per year for the last 20 years. Cambodia in becoming an increasingly attractive place for investors because Cambodia today has better infrastructure, low labor prices, and 70 percent of people are under 35 years old. These factors are the most encouraging for investors, believes Heang. ย ย  โ€‹He went on to say that the growth of the construction sector is demanding more responsibility and respect, as it is becoming a crucial industry for the nationโ€™s growth and people'sโ€™ wealth. โ€œNow Cambodian valuers and agents are also rising in their abilities and professionalism in order to prepare for the Asean economic community integrationโ€ he said. โ€œCambodia is one the leaders in economic growth within Asean, and we will step forward into the future as a strong marketโ€. ย  General Director of Century 21 Mekong, Chrek Soknim, said that he is optimism about the growth of real estate in Cambodia. โ€œThis should continue to grow sustainably until 2018 because the sector faces no impediments.โ€ He claimed that there are three factors currently supporting the growth of the real estate market sector. First of all, good political stability is important to attract more investors. Secondly, the Asean integration at the end of this year will mean more commerce and cultural exchanges between Asean states, naturally supporting demand for accommodation, investment properties and office space. Thirdly, the increase in quality and variety of available real estate will allow investors more choice when they buy real estate in Cambodia. And Forth, the royal government of Cambodia will soon be able to grant loans to its citizenry on long repayment terms of 20 years and higher, meaning more people will have credit to buy their own homes. When the majority of people are able to buy a house, then the construction and real estate sector can only grow. ย  โ€œEven though new development projects face some obstacles in the coming years, if they choose the right location, and build to the right quality standards, these problems will be limited,โ€ he added. He mentions that the economic growth rates of 7 to 7.5 percent are ideal for business growth, and will also support the real estate market development industry. Sear Chaylin, general director of CL Realty Estate, said that the property being sold has decreased a little bit in a last few months, but this is normal when the rainy season is coming. During this period, buyer transactions are usually slower. It will increase when Cambodia is ready to integrate with ASEAN at the end of this year. Many Japanese companies are now flowing into the Cambodian market, bringing new challenges and opportunities to the market. โ€œI think that the real estate market and property sector will continue to develop because the needs of the people are rising, strong economic growth is occurring alongside relative political stability, and security in the market is better than ever,โ€ Mr. Sear Chaylin said. โ€œEven though we are seeing increases in construction, it will be suitably matched to the current economic growth and the needs of the peopleโ€. Senior National Economic Counselor, H.E Mey Kalyan said that โ€œfor instance, when we buy fish, vegetables, and rice today, then we can eat. But, if we buy a house and property, we cannot eat the benefits immediately. We have to keep it for a long time and it represents a big risk. If you donโ€™t have enough money, you can borrow that money from the bank in order to invest, and hope that it will gain profit in the future. However, if the house is not sold or rented, people will not have money to pay back to the bank and, if this happens to too many people, the bank will collapse. When banks collapse the financial system and national economy is in great jeopardy.โ€ ย ย ย ย ย  โ€œBe careful if you are building for rent or sale, then you cannot rent or sell upon completion - this is a big problem. So, control your risks and always try to limit your chances of failure.โ€ H.E Mey said. โ€œThe royal government of Cambodia can see this risk. Be careful, because any sector growing so fast has risks like this.โ€ H.E Kalyan went on to say that the government should manage the flow of money in the right way in order to control this growth risk. But when you prevent the flow of money, the growth of the economy can suffer. Therefore, the management of money flow must play a balancing role into the future. H.E Mey Vann, General Director of Financial Industry of Ministry of Financial and Economy, said flows of money into the real estate market sector have come with few risks thus far, but the ministry is being proactive in working with investors in order to manage the data of development, demands, and specific support for preventing risk in this sector. โ€œData management and money flow management in this sector is very important for us if we want real estate development sustainabilityโ€ H.E Mey Vann said. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.
CONDO-TEL in Cambodia
CONDO-TEL in Cambodia
June 6, 2022, 5:06 p.m.
Realestate News
People talk about a new angle of doing business which has both challenges and success phase, for it is the right time now to grab a chance to diversify business to be successful. With a new concept of doing business in the kingdom, Mr. Ly Senleap, director of FURI Real Estate, said that CONDO-TEL is mixed between condo and hotel which is a new business concept. โ€œWe turn condo into hotel with 5 stars and we will provide services for customers like their home as the customers can cook, live privately, have living room, dining room and workplace, and they can have a porch to see the outside view.โ€ โ€œThe target customers that we focus on are business travelers who need privacy of livingโ€ ย Besides the service we provide variety of services for customers such as swimming pool, gym, restaurant, and food order for 24 hours. Although some people think that condo market will get stuck, but Mr. Senleap is optimistic about this market that will not cause any problem because of the political stability and economic growth which boost the demand. The start of CONDO-TEL service will be run for the first times in June. The location of the service is in SILVER TOWN Condo which is along the street #63 and situated in BKK 1 commune, Chamkar Mon district, Phnom Penh and the next project is in Siem Reap at the end of this year and after that is Sihanoukville. The director said, โ€œNo one here has been interested in the new angle of the business, but it is very popular in the developed countries such as Australia and America because hotel is a place which stay in short time and no privacy. The difference is that businesspeople need quiet place.โ€ โ€œWe think that we will have some difficulties for local customers because now there are many boutique hotel and hotels which target tourists, but we focus on businesspeople who want to do business here. We target this kind of guests, while it can face challenges, but it is the newest opportunity that no one takes and if we can do it, it will be strongly successful in the market as we have exports from America to lead the work,โ€ Mr. Senleap said. โ€œI strong believe that I will be able to do it because our price is 20 to 30 percent lower than hotelโ€™s, but we will not make our customers disappointed with our service,โ€ Mr. Senleap said, โ€œThe location is in the middle of Phnom Penh, commercial area, near embassy and government building which provide easiness for customers.โ€The hotel market focuses on 70 percent for online advertisement, so our market will concentrate on the perfect service advertisement and online, cooperate with businesspeople, NGOs, embassies, and both local and international investors. ย Mr. Senleap, said, โ€œOur strong point is that we lead the business professionally and have exports from American who have many experiences in meeting the customersโ€™ demand perfectly.โ€ โ€œThe business is risk, but we can do it, since we intend to solve the challenge or risk and turn impossible to possible and if we are successful, our business will be unique,โ€ he added. ย  Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.
The Construction Sector Leads on GDP
The Construction Sector Leads on GDP
June 6, 2022, 5:06 p.m.
Realestate News
The construction sector has become the mostย dynamic engine of growth, partly due to theย return of political stability and a revival inย consumption, according to a recent reportย by the World Bank.ย Economic growth here is still led by construction,ย garment exports and tourism, the World Bank said inย its report โ€œWorld Bank East Asia and Pacific Economicย Update โ€“ Staying the Course.โ€ย Construction investment increased nearly 3 billionย US Dollar in the first 11 months 2015 if compared withย the same period last year, according to the data from theย Ministry of Land Management, Urban Planning, andย Construction.According to Im Chhunlim, senior minister of theย Ministry of Land Management, Urban Planning, andย Construction, said construction investment capitalย reached about 2.9 billion US Dollars in the first 11ย months in 2015 if compared with the same period lastย year, increased 27 per cent. A group of local real estate expert said the constructionย sector helps invigorate the economy as wellย as GDP growth.ย Kim Heang, CEO of Khmer Real Estateย and president of Cambodian Valuers andย Estate Agents Association (CVEA), said theย construction sector took the biggest partย in Cambodiaโ€™s GDP because most wealthyย people gain benefit from the land andย construction. He warned, โ€œWe donโ€™t have to concentrateย only on the construction sector because theย prices can increase or decline depending onย the situation as there are many sectors weย have to focus on such as tourism, agriculture, as well asย garment.โ€ โ€œPeopleโ€™s income does not meet the currentย residential, and number of tenants saw an increase,ย so the government must take action to make middle incomeย people to be able to afford housing,โ€ he said. In order to become a developed country with strongย GDP, we have to depend on human resource. It is a long-term investment and the education system has toย be improved,โ€ Mr. Heang said. Chrek Soknim, CEO of Century21 Mekong, stressedย the vital role of the construction sector in theย Cambodian economy.ย โ€œThe economy talks about money. Currently as weย can see, construction sector in Cambodia injected aย lot of money into the economy. Thatโ€™s the reason theย construction sector took a big part in the GDP growth,โ€ย Mr. Soknim said. However, he said, โ€œeven though the Cambodia propertyย sector is younger if compared with other countries,ย the Kingdom gains advantages from the sector.โ€ โ€œWithย peopleโ€™s stable income bank sector in Cambodia alsoย plays a vital role in boosting the property sector, andย cash flow can help the economy,โ€ he added. โ€œTo make the construction sector consistency, theย government has to take care of investors by issuing lawsย to projects both investors and buyers,โ€ Mr. Soknim said. In Sitha, vice-president of World Trust Estate, saidย currently there have been many construction sitesย popping up in Phnom Penh, and this creates many jobsย for people as well as experts in the sector:ย โ€œIt means workers and experts in the constructionย sector earn more income from the construction, andย many constructions boost the GDP growth and accordingย to the current data from the Ministry of Land Management,ย Urban Planning and Construction, the construction saw anย increase, and this means it took a part in the GDP as well,โ€ย Mr. Sitha said. โ€œBank sector plays an important role inย providing loan for people to have enough ability to affordย home as many middle-income people use the loan to buyย their own home,โ€ he added. Return On Investment of condo investment in Cambodiaย is around 7.5 per year if compared to the same Asianย markets, Cambodiaโ€™s investment provide more benefit asย Thailand and Japan at 6.3 and 5.5 per cent respectively,ย China and Hong Kong are offering rent yields of only 2.7ย and 3.3 per cent respectively, and Philippine at 7.1 per centย annually, according to a recent study of Century 21 Mekong. According to a report of real estate agency Century21ย condominium development increased by 20 per centย annually from 2008 to 2014 with 13 projectsย successfully completed, which translates toย 3,090 available units as of today. With anotherย 17 projects currently underway, the reportย predicted that by 2018, when many of theย current projects are slated for completion, theย number will have more than tripled to over 10,000 availableย units across Phnom Penh. Cambodiaโ€™s per capita GDP is forecast to reach $1,220ย this year, up from $1,123 last year, according to official data.ย This places the country near lower-middle income status.ย Its new forecast comes just a few weeks after the Asianย Development Bank revised its March forecast for economicย growth this year from 7.3 per cent to 7 percent.ย The construction sector has become the most dynamicย engine of growth, partly due to the return of politicalย stability and a revival in consumption; however, the tourismย sector is underperforming, despite the initial recovery inย tourist arrivals to Thailand. Tourist arrivals during the first sixย months grew by only 4.6 percent (reaching 2.3 million visitors),ย compared to 6.9 percent during theย same period last year, the report fromย the World Bankย said. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.
Cambodia Property Expo 2016
Cambodia Property Expo 2016
June 6, 2022, 5:06 p.m.
Realestate News
Realestate.com.kh is proud to be the โ€œOFFICIAL PROPERTY PORTALโ€ of the 2016 Cambodia Property Expo, in association with AMB Tarsus Events Group.The Cambodia Property Expo is an annual, international expo that brings together a host of the nationโ€™s finest construction and property related companies under one roof. It is hosted by the Cambodia Constructors Association and the Ministry of Land Management, Urban Planning and Construction, Cambodia.ย  The Cambodia Property Expo allows industry leaders to share knowledge and experience with each other, and show the public their latest projects and accomplishments. A wide variety of property developers also attend the event to showcase their latest projects and offer expo-only discounts to new buyers. By attending the Cambodia Property Expo, all exhibitors will also get an opportunity to build business relationships and network with all attendees. Meanwhile, guests from the general public will get a unique and comprehensive insight into the Cambodian construction and property industry. The Cambodia Property Expo proudly unites property owners and buyers, key shareholders and decision makers, builders, contractors, architects and real estate agents and consultants all in the same place. This expo is is not to be missed. CAMBODIA PROPERTY EXPO '16Venue: Diamond Island Convention & Exhibition Center Chamkarmon, Phnom Penh, Cambodia Phnom Penh, Cambodia Date: 8-10 September 2016Contact Information for Exhibitors, Sponsors and Guests:AMB TARSUS EVENTS GROUPM: +855 16525142 E: veasna@ambtarsus.com DOWNLOAD THE FULL EVENTย BROCHURE
CVEA MOU with IEA Singapore
CVEA MOU with IEA Singapore
June 6, 2022, 5:05 p.m.
Realestate News
The CVEA tour group's itinerary included conferences with the Institute of Estate Agents of Singapore (IEA), the Royal Institution of Chartered Surveyors (RICS Singapore) and the Universiti Teknologi Malaysia (UTM) in Johor, Malaysia. While visiting the IEA on the 4th of March, an association of real estate agents in Singapore much like the CVEA in Cambodia, a MOU agreement was signed. The purpose of the MOU โ€œis to provide for exchange, representation, and other mutual benefitsโ€ฆโ€ between the two professional associations. CEO of Towncity Real Estate and Vice President of the CVEA, Van Chanthorn, said that, โ€œthe benefit of this MOU for members of CVEA is that all CVEA members can connect directly to IEA members that have 1000 members to cooperate, promote and sell the projects that they have in Cambodia. Meanwhile, Members of the IEA in Singapore can connect directly to CVEAโ€™s 86 member companies to cooperate and bring customers to buy the projects in Cambodia.โ€ The agreement hopes to facilitate the sharing of ethics, real estate and valuation practice standards, and to actively encourage and facilitate business opportunities between the two association's membership. The MOU also calls for an annual exchange of information between the two parties in the form of trade junkets and conferences. Chanthorn notes that, โ€œit is part of a longer term strategy for the CVEA. CVEA is not only focusing on the benefit sharing between IEA and CVEA but we also focusing on training and learning from each other on how to improve our membersโ€™ knowledge and experience to compete with not only in Cambodia but throughout ASEAN and Internationally.โ€
Guide to Real Estate Law in Cambodia, from BNG Legal
Guide to Real Estate Law in Cambodia, from BNG Legal
June 6, 2022, 5:05 p.m.
Realestate News
BNG Legal Cambodia has released their latest version of the Guide to Doing Business in Cambodia which contains extensive information about Cambodian real estate law and property regulations.This extremely comprehensive Guide to Doing Business in Cambodia gives valuable information for investors and Cambodian-based business people on Banking and Finance, Corporate & Commercial Law, Dispute Resolution in Cambodia, Intellectual Property Laws, Labor Law, Mining Law and Regulations, Marriage and Family Law - and last, but certainly not least, a comprehensive overview of Cambodian law related to Land and Construction.In regards to Real Estate Law and Regulation, the BNG Legal Guide to Doing Business in Cambodia duly covers Legal Ownership of Land in Cambodia, Acquisition of Property in Cambodia, Potential Risks, Enforcement of Property Rights, Establishing Control over Land, Perpetual Leases, Land Concessions, Construction, Encumbrances on Immovable Property andย Recently Issued Regulations and New Procedural Rules.This is a great guide for those trying to get their head around Cambodian Property Law.DOWNLOAD THE GUIDE TO DOING BUSINESS IN CAMBODIA EBOOK NOWBNG Legal Cambodia our a unique law firm in the Kingdom, able to offer a deep understanding of the local business environment while simultaneously supported by international professionalism and integrity. BNG Legal facilitate business, investment and trade between Cambodia, Myanmar and the rest of the world through innovative and cost-effective legal services.ย BNG Legal offer all range of real estate related legal services, including residential, commercial and industrial property transactions, Lease negotiation and agreement drafting, title search and due diligence, land registration and titling, agricultural land concessions, financing, mortgages and other securities, construction contracting, permitting, and financing, environmental compliance consulting, advice on Special Economic Zones and tax-optimization.Contact BNG Legal today at: cambodia@bnglegal.com / hhn@bnglegal.comDOWNLOAD THE GUIDE TO DOING BUSINESS IN CAMBODIA EBOOK NOWCheck out more articles, news and views related to real estate law - on realestate.com.kh today!
Sihanoukville first shopping mall at D'Seaview
Sihanoukville first shopping mall at D'Seaview
June 6, 2022, 5:06 p.m.
Realestate News
As HLH Groupโ€™s maiden housing development Dโ€™Seaview gears up for Phase 2 of its development โ€“ after having had all 300 of its residential units fully subscribed in Phase 1 since its launch in September 2015 โ€“ it will simultaneously be introducing Sihanoukvilleโ€™s largest shopping mall.SEE THE FULL LISTINGย The shopping mall, comprising a colossal 20,000 square metres of retail space, will be situated right next to Dโ€™Seaview. Slated to be the trendy uptown area of Sihanoukville, with Dโ€™Seaview being a mixed-use development that encompasses 737 residential units and numerous commercial units suitable for an array of businesses, the shopping mall will be an enticing complex to complete both residentsโ€™ and non-residentsโ€™ entertainment and shopping needs. The mall will hold such amenities as food courts, bars, health and wellness centres, beauty salons, mini-marts and financial institutions. The development will also incorporate an integrated hotel to capture Sihanoukvilleโ€™s growing popularity as Cambodiaโ€™s premier beach town. [caption id="attachment_81305" align="alignleft" width="472"] Local celebrity Khieu Sansana[/caption] โ€œGiven the countryโ€™s positive GDP growth of about 7 per cent annually, Cambodiaโ€™s economy remains vibrant and attractive to both local and foreign investors. Located next to Dโ€™Seaview, the mall will provide retail space for shopping and entertainment, making it a magnet for visitors and locals,โ€ said Datoโ€™ Dr Johnny Ong, CEO of HLH Group. He added that the mall will not only be popular for shoppers, it will also provide the development with an additional revenue stream. โ€œWe are currently seeking experienced mall operators for sale,โ€ said Datoโ€™ Dr Ong. While Sihanoukville has been pegged as the next hotspot in Cambodia not only for property investments, tourism has taken off with more flights landing and with the potential to become a fixture on the cruise ship circuit, HLH Groupโ€™s inaugural shopping mall could not have been more timely. Datoโ€™ Dr Ong also noted that the addition of this shopping mall will add more activities to the city, a problem that has long been lamented when engineering Sihanoukvilleโ€™s attractiveness as a destination. Popular TV personality KhieuSansana, who had recently subscribed to one of Dโ€™Seaviewโ€™s units, said that she believes Cambodiaโ€™s ASEAN integration plays an imperative role in attracting regional visitors to Sihanoukville. And as a constant traveler herself, she would also be able to lease her unit out to locals and foreigners who come for leisure or business while generating revenue from her personal investment into such a prime residence. With Dโ€™Seaview being only a five-minute stroll from the tranquil and scenic Sokha Beach โ€“ one of Sihanoukvilleโ€™s many sandy white beaches of crystal blue waters โ€“ property market watcher and investor Clement Dupont said that the development will elevate the cityโ€™s image to one of luxurious liveability, compared to other run-of-the-mill seaside holiday destinations. โ€œPeople will realise that Sihanoukville is a worthwhile place to invest in and attract homebuyers who are looking to live and work in a comfortable and classy environment, as the cityโ€™s economy grows from year to year,โ€ Dupont said. Set to capitalise on the Kingdomโ€™s trade and manufacturing sectors by having the countryโ€™s only deep-sea port, as well as a forthcoming 190-kilometre long and 25-metre wide expressway on National Road 4 linking Phnom Penh and Sihanoukville, the city has advantages coming from all directions. With Dโ€™Seaviewโ€™s location at the pulse of the city, HLH Groupโ€™s mall will garner interest from international and national retailers. SEE THE FULL LISTING
Your Gateway to ASEAN
Your Gateway to ASEAN
June 6, 2022, 5:05 p.m.
Property Reviews
Realestate News
The Gateway showroom is open everyday from 9.00am to 6.00pm. The Gateway showroom is located at the actual construction site of the Gateway project, along Russian Boulevard - the physical gateway of Phnom Penh central city.As Russian Boulevard is the main road or the gateway of Phnom Penh, it is the essential route for all VIPs entering the city, especially those traveling to the Prime Ministerโ€™s office from the International Airport. By positioning itself here on the main artery of Phnom Penh, the Gateway promises sustained appreciation for all ASEAN investors.ย  The Gateway is 3 minutes away from major amenities of Phnom Penh City. It will be alongside a variety of retail flagship stores, key government ministries, upcoming mega malls, and a host of International schools and embassies. Meanwhile, TA Corp has identified Cambodia as a fast rising market. Cambodia has illustrated strong and steady property growth year on year, with its average property prices doubling every 4-5 years over the past 10 years. Prime properties in Phnom Penh exhibit attractive rental yield of 7-11% of purchase prices. With bulk of its purchasing demand coming from the local buyers located in Phnom Penh; it displays a vote of confidence and a positive signal for potential investors who have already invested. The ASEAN Economic Community (AEC) has substantially increased the convenience of doing business in Phnom Penh and stimulated the demand for foreign direct investments from International Companies. Investorโ€™s from around the world are seizing the opportunity to tap on the high growth potential of the rising Cambodian market. Learn more about this iconic project: Check out the full listing and inquire today!
Knight Frank Prime Asia Development Land Index released
Knight Frank Prime Asia Development Land Index released
June 6, 2022, 5:06 p.m.
Realestate News
4 March 2016, Singapore โ€“ Knight Frank, the independent global property consultancy, today releases the Prime Asia Development Land Index for H2 2015. The index derives the price of prime residential (apartment or condominium) and commercial (office) development land in 13 major cities across Asia.Knight Frank Prime Asia Development Land Index shows prices of residential sites in the region appreciating 3.0% in H2 2015, up from the 1.2% seen in the previous six months. On the other hand, the price growth of office land slowed to 1.5% from 3.6%Report highlights:H2 2015 witnessed development land investment volumes in Asia rise by 14.1% year-on-year.Cross-border volumes increased by 55.3%, driven by intra-Asian investment flows.China bought almost two times more land in the rest of Asia.While the average price of a piece of development land has been climbing steadily since mid-2012, the average land size has been shrinking. In Indonesia, the governmentโ€™s efforts to tackle tax evasion is discouraging big-ticket purchases.Mr Nicholas Holt, Head of Research for Asia Pacific, says, โ€œThe confluence of easing construction costs and rising residential prices and office rents propelled Phnom Penhโ€™s prime land prices upwards. Although the growth rates in H2 2015 moderated slightly from the previous six months, they nonetheless were among the fastest in the region.โ€œTokyoโ€™s prime residential land index recorded the fastest growth among the cities tracked in H2 2015 โ€“ it is also the only market that outperformed Phnom Penh. With Japan joining the negative interest rate club, there could be more yield compression and price appreciation.โ€Download the full report!
Where to Buy Development Land in Phnom Penh: Realestate.com.khTV
Where to Buy Development Land in Phnom Penh: Realestate.com.khTV
June 6, 2022, 5:06 p.m.
Realestate News
Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by RealEstate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home. Missed Part 1 or Part 2?On this weekโ€™s show, weโ€™re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal, about where to buy development land in Phnom Penh. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 3: WHAT ARE BEST AREAS TO BUY DEVELOPMENT LAND IN PHNOM PENH?Realestate.com.kh: What districts are the best to buy in in Phnom Penh for developers? ย Say if you got a new developer client seeking consultation, which areas would you recommend buying land in now for a new development project?In Sitha: I think right now Chamkarmon District is one of the four districts of Phnom Penh that I would consider as the good place to invest at the moment and into the future. I think that's where to buy development land in Phnom Penh.ย Realestate.com.kh: Land's expensive right?In Sitha: Yeah, the land is little bit expensive but it's still good to invest. As you see, Chamkarmon District is the place with the most expats, restaurants and the prime hotel area of approximately 1,073.72 hectares. In this district, I consider two communes, BKK1 and Tonle Bassac, to be best to invest in.Realestate.com.kh: Which ones?In Sitha: Number one is Boeung Keng Kang 1 and number two is Tonle Bassac. You see, they are in the central area, so the southeast of Independent monument, and this district has a lot of wealthy residents, NGO, corporates, etc. And the landscape is very nice, very beautiful and wide, leafy streets. Realestate.com.kh: Will developers who choose to build in BKK1 increase their chance of higher rental returns?In Sitha: That's correct.Realestate.com.kh: Because of all the expats and lots of money in this area?In Sitha: In Boeung Keng Kang 1 and Tonle Bassac, there are many rich people. One unit of a serviced apartment with two bedrooms can be priced from 800 US to over 1800. Yet, ultimately, it is based on the quality and the design of the construction.Realestate.com.kh: Much, much higher than the rest of the country?In Sitha: Yeah, it makes it a good investment opportunity if for a one bedroom unit you can get almost 1000 to 1500 in rental returns. These areas offer easy access to all sorts of entertainment and food venues, and also the government institutions, hospitals, international schools and universities. This is a centralized area. Market price increases yearly so this is a very good place to invest in these two sangkats/communes.Loving it?ย Then you should watch part 4ย now:WHY PHNOM PENH BOREYS ARE PROVING SUCH A POPULAR MARKET FOR DEVELOPERS AND HOMEBUYERS coming soon
Launch a Development project in Cambodia: How To; Realestate.com.khTV
Launch a Development project in Cambodia: How To; Realestate.com.khTV
June 6, 2022, 5:04 p.m.
Realestate News
Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by RealEstate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.On this weekโ€™s show, weโ€™re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 2: THE PROCESS TO START ANY DEVELOPMENT PROJECT IN CAMBODIA, FOR DEVELOPERSย Missed part 1? View it here!Realestate.com.kh: For developers, when you meet the developer that's considering launching a project in Cambodia, can you briefly explain the process for starting a new development project in Cambodia? What do they need to do?In Sitha: Thank you, this is a good question as well. Most developers have to understand a few things when they decide to enter the Cambodian market. To start a new development project in Cambodia, number one, the developer must get the business license from the Ministry of CommerceRealestate.com.kh: Number one, business license. This takes how long?In Sitha: I'd say a few weeks, usually from one week to two weeks. Now everything's online so the developer can go to the website of the Ministry of Commerce and apply to get the business license.Realestate.com.kh: This process is much faster now?In Sitha: Yes, it is faster now. This is a new system for the Cambodian government so everything's online now. ย Second, the developer needs to get permission from the General Department of Taxation. They have to apply to get VAT number and tax patent. You can also apply for tax patent online. The developers then apply to get the construction license from the Ministry of Land Management Urban Planning and Construction.Realestate.com.kh: The construction license, that's general - or you take a different license for different type of projects?In Sitha: Actually, it will be specific in regards to the size and type of the development. And we have specific periods. Realestate.com.kh: And if they don't complete the comstruction in a certain time?In Sitha: They can extend. At the same time the developers are applying to get the construction license, they need permission for their project from the Ministry of Economy and Finance as well. The same registration applies for a developer as applies to a real estate agency. In the real estate business, first we have to apply to get the business license from the Ministry of Commerce and then get the Tax Patent. Then we have to apply to get our license and certificate from the Ministry of Economy and Finance for the specific professional field as a developer, agent and property manager in some cases. The developer is no different, and needs to get licensed for any type of business it undertakes.Realestate.com.kh: So the developer, they need to apply for a license to sell their property also? They need to apply for a real estate license?In Sitha: Yes they do.Number five in the process is that ย the developers have to prepare the master plan for the development project, and submit this to the Ministry of Land Management Urban Planning and Construction and wait for the approval. After the approval, the Ministry of Land Management provide construction permission. Developers then can start the development project at the site that they propose. Realestate.com.kh: Roughly how long does it take to receive these permissions to begin? How fast could they do that?In Sitha: It takes a few months. It depends on how busy the government is. Some Months they are busy, like for the official meetings or something, so it takes a longer. Broadly, it's between one month and three months start to finish.Realestate.com.kh: When they submit the project plan to the government, how specific, how detailed does the plan need to be at this stage?In Sitha: They should include the floor plans as part of the master plan, in order for a professional architect from the land management ministry to check. Which means that before construction starts, developers have to prepare the master plan, the complete of construction prediction, and submit all information to the Ministry of Land Management. ย The Ministry of Land Management will then check and verify whether it shall proceed.Realestate.com.kh: You must have a registered construction company in this plan?In Sitha: Yeah, yeah. It shall be under one company who can also be registered for construction, or in partnership with a separate registered construction company. Number six, in the process for a developer to start in Cambodia, the marketing and selling strategy is also important. How to do the marketing and how to sell your type of development in Cambodia. Many developer donโ€™t pay enough attention to this. It's all about the marketing. I say developers need to do the market research and see whether the project could be a healthy seller in this market. And donโ€™t wait until after the construction to do this! Can customers buy or not? And research the right price or something like that. The developer needs to understand the market price, and likely changes, which means the price that could be affordable to the customer compared to the neighboring development projects. My company, VTrust Appraisal, are specialists in research and market study. We are an independent organization that can bring a lot of useful knowledge to those considering development projects. [caption id="attachment_81203" align="alignleft" width="300"] The Ministry of Land Management Construction and Urban Planning, Phnom Penh.[/caption] Realestate.com.kh: The developer can sell 70% of a condo project to foreigners right?In Sitha: Of course, developers can sell 70% to the foreigner owners.Number eight, in the process for a new developer, is to select the right type of customer to sell your units to. Not all customers are the same, and not all will suit your development. It depends on how much is the unit price for each condo. And this depends on the area, and whether you want to target local or ย international customers. It is a very good time, and a good opportunity for the developer to join in the condo development in this country. Number nine, in the start-up process for any developer is finding referral agents.Realestate.com.kh: When you say referral agents, you mean the developer has one agency working exclusively for them and then referral agents, all those other agencies who can co-sell and refer clients.In Sitha: Yes, you see, the CVEA (the Cambodian Valuers and Estate Agent Association) can be extremely useful for this because they are the mother of the real estate companies within Cambodia, the big umbrella of the industry - and the CVEA has a lot of real estate members.Realestate.com.kh: They're very interested to meet new developments?In Sitha: The real estate agents in the CVEA are professional, and they are well known, so the developer can get them to help out in selling the project as referral agents. They will share information among all members. Ten, the last point, cooperate for home loan options from the banking sector. To invest in the property I believe that we cannot have 100 percent of the money to own the properties. Now the banking sector in Cambodia generally provide home loans to the real estate developer up to 70%. To invest in property in this community, we use 70% of our own investment and the other, 70% or more from home loans. Everything they have to set part with the bank. Could be the reliable bank for the coverage in terms of loan financing. Loving it?ย Then you should watch part 3 now:WHAT ARE BEST AREAS TO BUY DEVELOPMENT LAND IN PHNOM PENH
Why develop and invest in Cambodia? Realestate.com.khTV
Why develop and invest in Cambodia? Realestate.com.khTV
June 6, 2022, 5:06 p.m.
Realestate News
Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by RealEstate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.On this weekโ€™s show, weโ€™re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 1: WHY PROPERTY DEVELOPERS AND INVESTORS ARE INCREASINGLY LOOKING TO CAMBODIARealestate.com.kh: Mr. Sitha, I understand you have a lot of experience in advising property developers in Cambodia. What do you believe is driving the current high levels of property develop in the country now, in Phnom Penh in particular? Why do people want to invest inย Cambodia?In Sitha: Well, thank you for your excellent question. In Cambodia now, the business opportunity is good compared to the late 90s. You see when the country and the world had the economic crisis. After 2009, the market is better and better. More foreign investors are looking to this market. Most from China, Hong Kong, Malaysia, Japan, America and local developers. All these people are looking to invest in Cambodia.Come to the questions. What drives the property development in the country currently? I think the investors themselves firstly have to have unlimited/sufficient investment capital for the investments in Cambodia, meaning they canโ€™t enter without foresight. Number two, the investment projects licensing fees must be taken into consideration. Number three, investors must choose the right locations given their target market and budget, so location is also the most important to set up the development project. I think the central city is the best location at present, and also in the peninsula areas, or the other side of the river, if you're talking by areas.Realestate.com.kh: Why's that?In Sitha: Actually in Chroy Changvar the environment is good. The heart of the land between the Rivers is very beautiful, ideal to build a hotel or condo development. Realestate.com.kh: The infrastructure's really improving that side of the river now? [caption id="attachment_81189" align="alignleft" width="278"] Mr. In Sitha, Director of Business Development at VTrust Appraisal.[/caption] In Sitha: Yeah. A developer could build high rise buildings without limitations in this location as there are still no restrictions in the Chroy Changvar ย area, which means we could build high as long as they maintain construction qualities. Construction qualities that I just mentioned are also an important consideration for the investor. Quality construction ensures a project will have a long lifetime in the market. Number four, company brand name and reputation is also very important to this industry. Any new developer in the Cambodian market must build its brand reputation also. So how to build our brand name? My recommendation is to make a joint venture agreement with a good quality construction company and an experienced development company - preferably with experience in multiple international markets. Number six, you need to understand what is the competitive price in the market for a project like you are looking at. This means understanding the market price. It should in line with demand in the locality as well as considering what is reasonable for the foreign investor coming to our market as well.Number seven. You must consider the marketing tools you will use to expose your development project. I think RealEstate.com.kh is the one of the best digital marketing options for them to choose.Loving it?ย Then you should watch partย 2 now:ย THE PROCESS TO START ANY DEVELOPMENT PROJECT IN CAMBODIA, FOR DEVELOPERS
Invest in Cambodia: A history of a highly-open marketplace
Invest in Cambodia: A history of a highly-open marketplace
June 6, 2022, 5:06 p.m.
Realestate News
Why Is Cambodia An Excellent Investment Opportunity?The reasons to invest in Cambodia are many: Cambodia is a relatively young nation with a rich, old culture. It is a relatively untapped market, offering potentially substantial upside to foreign investors looking for green field investment opportunities. There is plenty of room for improvement in terms of the legal and judicial climate, but the current head of government -- Hun Sen -- has been in charge for more than 25 years, providing uncommon levels of stability in a country that was wracked by war not that many decades ago.ย  Rami Sharaf,ย Member of International Advisory Council, APCO Worldwide, and a well-known advocate for the Cambodian market, says that, โ€œthe major attraction for foreign investors considering whether they should invest in Cambodia is the ASEAN-member nationโ€™s steady economic growth; phenomenally steady growth: 7.5 per cent average for the last 5 years, year on year. This puts Cambodia as the number 21 worldwide in growth, and number 1 in the region.โ€ ย The Current Outlook:The country enjoys a relatively low cost of living, which helps keep wages low, thus making it a place investors can get their feet wet with relatively low risks. The government has liberal business policies and is actively seeking to attract additional foreign investment. It is a beautiful country with a rich heritage, fueling opportunities in tourism. It has an unusually good geographic position, giving it access to some of the largest, most active and growing markets in the world. Due to its membership in ASEAN, it has access to the ASEAN Free Trade Area. ASEAN is kind of like the European Union for the Southeast Asian Nations. For comparison, the countries of the European Union have 508 million people and the ASEAN countries have 625 million people and are a less mature market, providing vastly more opportunity for growth. Additionally, Cambodia has been designated one of the Least Developed Countries (LDC), which gives it preferential access to both the European and North American markets. Cambodia joined the Association of South East Asian Nations (ASEAN) in 1999. This multinational organization has substantial goals of economic development for the group of countries located roughly between Australia and China, many of them island nations. If ASEAN were a single country, it would have the seventh largest economy in the world, after the US, China, Japan, Germany, France and the United Kingdom. Please note that Germany, France and the United Kingdom are all members of the European Union, the organization ASEAN is hoping to emulate to some degree. Additionally, Cambodia is midway between China and India. Very recently, India displaced China as the world's fastest growing economy. Due to its location, Cambodia has excellent geographic access to both of this huge, emerging markets. The wealth of the future is practically guaranteed to be determined by who has access to these extremely large and very fast growing markets. In 2010, the Chinaโ€“ASEAN Free Trade Area (CAFTA) became a reality, giving member nations access to a trading block of 1.7 billion people. ASEAN also has an agreement with Australia and New Zealand that creates yet another free trade area in the other direction (AANZFTA). Additionally, talks are under way between India and ASEAN, which could create a similar trade block. Last, Cambodia's LDC status gives it preferential access to some of the richest markets in the world for certain products. In 2003, the Heritage Foundation's Index of Economic Freedom ranked Cambodia 35th among 170 countries in terms of economic freedom. This puts in on par with Japan and places it well ahead of many of its neighbors in the ASEAN community. Thus, it constitutes one of the most open economies in the region. At that time, the Index of Economic Freedom commented on positive governmental policies. Obviously, the country's qualification as one of the Least Developed Countries has some downsides, such as limited infrastructure and widespread poverty. But, increasingly, there is evidence that foreign companies typically provide both better pay and better working conditions for local nationals. This means that investing in an LDC can be a case of doing good while doing well: You can feel good about the improvements your investment is bringing to the country while also being happy with the benefit to your own bottom line. In fact, the poverty rate in Cambodia has dropped dramatically from 47.50 percent in 1993 to just 23 percent in 2011. So while it is still a poor country, it is seeing incredible forward progress. This fact helps ensure that investment will be profitable for the investors.Cambodia has been noticed for its unusual degree of market-friendliness for an LDC.ย The areas of note include:Opportunities in Tourism: Unlike its neighbors, such as Thailand and Vietnam, Cambodia explicitly desires to attract foreign investment in its tourism sector. Tourism is the area in which Cambodia rightly most wants to attract foreign investment. This goal is little different than its neighbors like Thailand , Vietnam and most recently even Laos. In recent years, tourism to Cambodia has exploded, enjoying double digit increases many years and hitting 4.5 million tourists in 2014.ย In 1992, Angkor Wat, the world's largest religious monument, was named a World Heritage Site. It attracts significant interest, fueling growth of hotels and other amenities in the nearby town of Siem Riep. While it is certainly the best known site in Cambodia, there is no shortage of cultural heritage and natural beauty for attracting additional tourism dollars to the country. Development of hotels, golf courses and other amenities are a strong market. The government has a track record of dealing progressively with this development segment, such as at the Phnom Penh International Airport.Agricultural Investment Opportunities:An abundance of water and fertile land combined with affordable local labor creates significant opportunity for agricultural investment and development, such as in organic farming and agro-processing. Foreign partners bring not only capital, but also essential knowledge and skill to the table. The combination of forces is very often a win/win for both sides. Although land cannot be owned by foreign investors, access to land is readily available via 99-year leases and joint ventures where a local partner owns at least 51 percent of the equity. Some hot agricultural areas include: fisheries, rubber processing, sugar processing, jute, palm oil refineries, and large varieties of tropical fruits and organic produce. Learn more about controlling land in Cambodia...Foreign Direct Investment (FDI): Throughout the 1990s, Cambodia attracted increasing amounts of Foreign Direct Investment. Malaysia got in early and captured a great deal of "first mover" benefit, as well as concessions for their investments, such in mining and forestry. Cambodia has come a long way since Malaysia first took notice of the country in terms of internal improvements and development, yet there remains a great deal of room for additional growth. The good track record of improvement combined with so much remaining upside is a situation that is extremely attractive for investors.
Phnom Penh City Master Plan 2035: Legality will lead to Fruition
Phnom Penh City Master Plan 2035: Legality will lead to Fruition
June 7, 2022, 5:35 a.m.
Realestate News
The urban planning and construction panel discussion held as part of the second Global Alumni convention (GAC) at the Intercontinental hotel on Saturday 30th January 2016 presented the figures of 151 borey projects currently underway, 186 real estate companies in operation in Cambodia and that there will be approximately 20,000 condos in Phnom Penh by 2018. This fell into a wider discussion about the proposed Phnom Penh City Master Plan 2035, and how the city canย sustainablyย grow into the future...So what implications does this have for the sector and the investor?There were several questions raised at this yearโ€™s GAC event around construction quality control and the legality of the building and construction industry if the Royal Government seeks to achieve its vision of a Phnom Penh City Master Plan 2035. โ€œHow do you know that this building is built to standard?โ€ asks H.E. Dr. Sok Siphana, legal advisor to the Royal Government of Cambodia, โ€œThereโ€™s a lot of issues around quality of construction, especially if you are building 20-30 stories. How do you know who is qualified?โ€ The government sought the assistance of the experienced legal drafter, Dr. Sok Siphana, to develop a comprehensive building and construction law to regulate the industry, and this experience has no-doubt influenced somewhat the Phnom penh city master plan. โ€œGood construction is a business within itself and itโ€™s good for the economy,โ€ says Dr. Sok Siphana, โ€œQuality class A building attracts reliable investors. How do you attract sub-regional companies to set up in Cambodia in low quality shoddy buildings? We have to regulate the industry and the practitioners within it. We have to introduce the concept of certification.โ€ Dr. Sok Siphana says that public safety is paramount. โ€œFor example, in general, the current laws governing contracts for boreys do not protect the consumer. As the State, we have to think about the public... How to ensure that thereโ€™s no fraud and that the public are safe, and that buildings wonโ€™t collapse while youโ€™re still paying the mortgage.โ€ So how will people within the sector build their knowledge and understanding of the law and how will it be enforced? How will they be educated on real estate technical skills such as quality building codes, practices and property evaluation?That being said, the Phnom Penh City Master Plan 2035 seemingly must come as part of a wider regulatory reform framework. And, so it seems, tertiary and vocational training development throughout Cambodia. Kim Heang, CEO of Khmer Real Estate and current President of the Cambodian Valuers and Estate Agents Association (CVEA), says that the peak industry body plans to start a training institute after Khmer New Year with the view of providing essential technical vocational training for the real estate industry. โ€œWe plan to create a specialised institute - as the bulk of the dirty work is not done by the architect or engineer; itโ€™s done by tradesmen. In Cambodian culture we value high position professions but forget about these trades such as plumbers and electricians. These people have a lot of value. This is where the role for vocational training lies. Not everyone can decide to be a crane operator and just go and do itโ€, he says. Kim notes that the CVEA has the full support of the Ministry of Banking and Finance to undertake their training institute project later this year, โ€œWe have the backing of the ministry for a real estate training school. Over the next year we plan to provide three months vocational training in agency work and property valuation.โ€ Simon Griffiths, Associate Director of CBRE, believes along with technical training, realtors need to take the lead in upholding high standards. โ€œStandards and quality all exist in Cambodia. We need real estate firms to take the lead to act responsibly while those valuation standards and new laws are being put in place. The industry as a whole needs toย recognizeย the importance of valuation and not bend theย rules when it suits because the impact it can have is very severe. ANZ and the other banks will know the risk of improper valuation.โ€ โ€œCambodia has so much potential,โ€ says Kim, โ€œWe have to compete with our neighbours now we are part of the Asean Economic Community (AEC). We hope our trainees will go out and even work abroad, then bring back this knowledge to Cambodia to advance the real estate industry as a wholeโ€.